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OIL AND GAS WELL CASING

Inquiries (Section 42)

BY ELECTRONIC MAIL

December 18, 2007

To: Counsel and parties on the attached distribution list

Subject:

Preliminary Determination on Like Goods and Classes of
Goods
Oil and Gas Well Casing (Inquiry No.: NQ-2007-001)

On October 12, 2007, the Canadian International Trade Tribunal
(the Tribunal) determined that there was evidence that disclosed a
reasonable indication that the dumping and subsidizing of the
subject goods had caused injury to the domestic industry (File No.
PI-2007-001).

In its statement of reasons issued on October 26, 2007, the
Tribunal stated that, in view of the evidence on the record,
seamless oil and gas well casing produced by the domestic industry
was “like goods” to the subject goods. The Tribunal noted that
whether there was merit to expand the definition of the “like
goods” to include electric resistance welded (ERW) oil and gas well
casing was an issue that would need to be fully addressed in the
context of an inquiry under section 42 of the Special Import
Measures Act (SIMA) if the Canada Border Services Agency
(CBSA) concluded in its preliminary determination that the subject
goods had been dumped or subsidized. The Tribunal further stated
that high-strength and low-strength oil and gas well casing
constituted a single class of goods. However, it also noted that
whether high-strength and low-strength oil and gas well casing
constitute two separate classes of goods was another issue that
would have to be fully addressed in the context of this
inquiry.

Accordingly, in the Notice of Commencement of Inquiry of
November 13, 2007, the Tribunal invited interested parties to file
submissions on whether there was merit to expand the scope of "like
goods" to include ERW oil and gas well casing, as well as on
whether there was merit in creating two or more distinct classes of
goods.

After having considered the evidence on the record and the
arguments made by parties, the Tribunal has determined that
high-strength and low-strength oil and gas well casing
constitute a single class of goods. The Tribunal has also
determined that ERW oil and gas well casing is like goods to
seamless oil and gas well casing.

The Tribunal will therefore conduct its injury analysis on the
basis of a single class of goods. The Tribunal will also determine
what constitutes the domestic industry and conduct its injury
analysis on the basis that domestically-produced like goods include
seamless and ERW oil and gas well casing.

The reasons for these determinations will form part of the
Tribunal’s statement of reasons for the inquiry.

The Tribunal also wishes to inform the CBSA that, as a result of
this determination, it no longer needs to collect information on
the dumping and subsidizing of oil and gas well casing separated
into high-strength and low-strength categories, as was requested by
the Tribunal in its letter of October 22, 2007.